Question
Lisa is a self-employed architect who also is a partner in a successful architectural firm. She receives a substantial part of her income from her
Lisa is a self-employed architect who also is a partner in a successful architectural firm. She receives a substantial part of her income from her partnership interest, which is a pass-through entity. Which of the following tax implications is true?\ Partnership income for active partners is subject to self-employment tax.\ Since the architectural firm is a pass-through entity, Lisa's income from it is not subject to self-employment tax.\ All partnership income is considered passive and not subjected to self-employment tax.\ Only a portion of the income is subject to self-employment tax, depending on Lisa's role in the firm.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started